TitleNews Online Archive

TitleNews Online Archive

FHA Terminates Agreements With 15 Originators

January 27, 2011

The Federal Housing Administration terminated agreements with 15 originators and seven underwriters approved for mortgage insurance from the Department of Housing and Urban Development, according to a recent Federal Register.

HUD can relinquish federal backing to mortgagees that have a default and claim rate exceeding both the national average and 200 percent of the average default and claim rate in the pertinent geographic area. HUD also can terminate underwriters under the same criteria, however, the default and claim rate must be above 250 percent of the geographic average.